Discounted Cash Flow (DCF) Analysis Levered

Cementos Pacasmayo S.A.A. (CPAC)

$5.375

-0.07 (-1.38%)

All numbers are in Millions, Currency in USD

Stock DCF: 12.73 | 5.375 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,262.25	1,392.70	1,296.33	1,318.47	1,340.99	1,363.88	1,387.17	1,410.86	1,434.96	1,459.46
Revenue (%)
Operating Cash Flow	203.63	205.14	331.36	247.97	252.21	256.52	260.90	265.35	269.88	274.49
Operating Cash Flow (%)
Capital Expenditure	-111.27	-83.01	-52.55	-82.75	-84.17	-85.60	-87.06	-88.55	-90.06	-91.60
Capital Expenditure (%)
Free Cash Flow	92.36	122.12	278.82	165.22	168.04	170.91	173.83	176.80	179.82	182.89

Weighted Average Cost Of Capital

Share price	$ 5.375
Beta	0.309
Diluted Shares Outstanding	82.71
Cost of Debt
Tax Rate	32.62
After-tax Cost of Debt	1,471.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.151
Total Debt	4.36
Total Equity	444.54
Total Capital	448.90
Debt Weighting	0.97
Equity Weighting	99.03
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,262.25	1,392.70	1,296.33	1,318.47	1,340.99	1,363.88	1,387.17	1,410.86	1,434.96	1,459.46
Operating Cash Flow	203.63	205.14	331.36	247.97	252.21	256.52	260.90	265.35	269.88	274.49
Capital Expenditure	-111.27	-83.01	-52.55	-82.75	-84.17	-85.60	-87.06	-88.55	-90.06	-91.60
Free Cash Flow	92.36	122.12	278.82	165.22	168.04	170.91	173.83	176.80	179.82	182.89
WACC
PV LFCF				197.24	168.04	143.17	121.97	103.92	88.53	75.43
SUM PV LFCF										533.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	19.38
Free cash flow (t + 1)	186.55
Terminal Value	1,073.35
Present Value of Terminal Value	442.67

Intrinsic Value

Enterprise Value	975.69
Net Debt	-77.42
Equity Value	1,053.11
Shares Outstanding	82.71
Equity Value Per Share	12.73